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Will ACOs increase medical malpractice claims?

November 27th, 2012

By Javier Sanabria

Milliman’s Richard Frese has co-authored a new article on the financial reporting of medical malpractice self-insurance for the Healthcare Financial Management Association. Among other things, “Perspectives on Medical Malpractice Self-Insurance Financial Reporting” discusses how accountable care organizations (ACOs) may increase the frequency of medical malpractice claims.

Here is an excerpt:

Another trend that warrants monitoring is the emergence of accountable care organizations (ACOs) and the impact that such organizations will have on medical malpractice claims. Among the primary goals of ACOs is to improve integration of care, which should ultimately contribute to a reduction in medical malpractice risk. What remains to be seen is how independent healthcare entities forming ACOs will choose to manage medical malpractice risk (e.g., risk pools, captive insurance arrangements) and coordinate defense of medical malpractice claims. Some also argue that ACOs might increase the frequency of medical malpractice claims because patient expectations regarding quality of care will be heightened.

Read the entire article here.

Patrick Kitchen, of McGladrey LLP, contributed to this article.

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  1. March 18th, 2013 at 12:46 | #1

    My opinion is that Medical Malpractice is a concern today and will always remain a concern and it is more an issue of tort reform than anything else.

    Theoretically, ACOs should create larger more integrated risk pools and that alone may decrease the expense. As ACOs develop and formulate clinically proven protocols, the cost of care should decrease and as long as protocols are followed and sound medical decision around them prevails, the industry should see less successful malpractice claims.

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